Question

Which of the following statement is correct about "Finance Commission"?

1) It is mentioned under the article 285 of the Indian constitution.

2) Th finance commission deals only with Union states.

1. Only 1
2. Only 2
3. Both 1 and 2
4. Neither 1 nor 2.

Answer 1

Correct Answer - Option 4 : Neither 1 nor 2.

The correct answer is Neither 1 nor 2.

• The finance commission is a constitutional body mentioned under article 280 of the Indian constitution.
• The office of Finance commission was formed on 22 November 1951.
• The first commission was established in 1951 under the "Finance commission act 1951" by Dr. B.R Ambedkar.
• N.K Singh is the present chairman of this commission.
• This commission deals with unions and states.
• The function of the commission includes distribution of tax between center and states.
• It also determines factors governing Grant-in-Aid to the states and magnitude of the same.
• The chairman of the finance commission is chosen from the people with experience of public affairs.
• K.C Neogy was the first chairman of this commission.